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Hyundai Motor has warned that ongoing tensions in the Middle East are disrupting its export operations to Europe and North Africa, as shipments typically routed through the region face increasing obstacles. The situation highlights mounting pressure on global supply chains as key trade corridors become more difficult to navigate.
The conflict has significantly impacted shipping routes, leading to higher transportation costs, delays in delivery schedules, and added strain on both the automaker and its network of suppliers.
As part of the Hyundai Motor Group—the world’s third-largest automotive group alongside Kia Corporation—the company cautioned that the effects of the crisis could persist even if hostilities ease in the near term.
Kim Dong-jo, Senior Vice President at Hyundai’s Global Policy Office, noted that restoring disrupted supply chains would be a gradual process. Speaking at Pyeongtaek-Dangjin Port, where officials and industry stakeholders gathered to assess the situation, he emphasised that rebuilding logistics networks would require considerable time even after conditions stabilise.
At the port, thousands of vehicles were seen awaiting shipment aboard a large carrier bound for the United States, illustrating the scale of operations affected by the disruption.
Kim also pointed to rising logistics expenses and shortages of raw materials linked to the conflict, which are placing additional pressure on component manufacturers and production lines. He added that Hyundai is coordinating closely with suppliers and government authorities to mitigate the impact.
Meanwhile, Hyundai Glovis, the group’s logistics arm, reported that access to certain Middle Eastern shipping routes has been restricted. As a result, cargo is being temporarily stored at alternative hubs until normal operations can resume.
Although shipments to North America’s east and west coasts remain largely unaffected for now, the company noted that limited access to Middle Eastern routes and rising fuel prices are reducing overall efficiency.
South Korea’s Trade Minister Yeo Han-koo stated that some cargo is being rerouted to interim locations, including Sri Lanka, where shipments are being held as companies reassess logistics plans.
Recent reports have also indicated congestion at regional ports, with diverted cargo adding pressure to infrastructure.
Despite these challenges, South Korea’s exports recorded strong growth in March, although shipments to the Middle East dropped sharply. Auto exports remained relatively stable, as supply disruptions offset strong global demand for environmentally friendly vehicles.
Hyundai Motor reported global sales of 358,759 units in March, marking a slight decline compared to the previous year, with both domestic and overseas markets experiencing modest decreases.
